OUR MISSION IS: TO HELP OUR CLIENTS SUCCEED BY ANTICIPATING AND UNDERSTANDING THEIR NEEDS AND BY EFFICIENTLY DELIVERING QUALITY SERVICES WITH CONFIDENCE AND INTEGRITY.
GDS ASSOCIATES, INC. IS A MULTI-SERVICE CONSULTING AND ENGINEERING FIRMformed in 1986. Our consultants are recognized leaders in their respective fields, dedicated PROVENto their clients, innovative in their approach to meeting unique challenges, and known forconsistently being available when needed. Our broad range of expertise focuses onclients associated with, or affected by, electric, gas, water and wastewater utilities.In addition, we offer information technology, market research, and statistical services to adiverse client base. A succinct description of our traditional clients’ business is “capital intensive.” Although typically associated with the substantial funds needed to provide utility services, that characteristic more generally applies to the significant investment in resources that our clients must make to achieve their goals. Selection of the proper resources ultimately determines their success or failure. By providing an extensive supply of dependable resources, GDS Associates, Inc. strives to develop long- term client relationships. Our goal is to be a wise investment in consulting services for our clients. RIGHT-FIT SOLUTIONS
THERE ARE SEVERAL HALLMARKS OF WISE CONSULTING INVESTMENTS.PERFORMANCE F IRST, THEY ARE FOUNDED ON PROVEN PERFORMANCE, not promises of speculative results. GDS Associates’ long history of meeting client needs has established our reputation within the industry. In fact, most of our project assignments are derived from repeat work for existing clients or from client referrals. DIVERSE RESOURCES SECONDLY, WISE INVESTMENTS REFLECT A DIVERSIFICATION of capabilities. Drawing upon many years of experience in problem- solving for both utility and non-utility clients, we have developed a keen insight into the causes and cures of our clients’ challenges. In addition, the size and depth of our firm permit us to offer clients multiple sources for assistance, ensuring that we will complete the requested services in a competent and timely manner. KEEN INSIGHT FINALLY, WISE INVESTMENTS ARE THOSE THAT MATCH THE correct resources with specific needs. No two clients or problems are exactly alike. GDS Associates strives to deliver “right-fit” solutions for each client’s particular situation.
OUR CORE VALUES:• We endeavor to identify, then meet or exceed our clients’ needs.• We gauge our overall success in terms of our clients’ success, by promoting a partnership perspective.• We will conduct our practice at all times with honesty and integrity.• Our consulting staff will possess the requisite knowledge and experience to solve our clients’ problems.• Our services will be competently performed, and our work product will be presented in a professional, understandable manner.• Our financial success is founded on long-term client relationships, proficient project management, and efficient infrastructure.• We encourage professional development of our employees by providing opportunities for challenging work.• We promote a working environment of mutual respect and cooperation among our employees. GDS SERVICES: Power Supply Planning Services Financial Analysis and Rate Services Generation Services Regulatory and Restructuring Services Renewable Energy Resources, Distributed Generation, and Combined Heat and Power Services Energy Efficiency and Demand-Side Management Services Electric Planning and Design Services (Hi-Line Engineering, LLC) Environmental Management Services (GreenLine Environmental) Deregulation and Retail Energy Procurement Services Utility Privatization Services Water and Wastewater Utility Consulting Services Natural Gas Consulting Services Statistics and Market Research Services Information Technology Services
Corporate Headquar ters: 1850 Parkway Place, Suite 800, Marietta, Georgia 30067 • Voice: 770.425.8100 • Fax: 770.426.0303 • www. gdsassociates.com919 Congress Avenue 1181 Elm Street 437 So. Yellowstone Drive 1826 Opelika Road 1000 Harris AvenueSuite 800 Suite 205 Suite 212 Aubur n, Alabama 36830 Suite 16Austin, Texas 78701 Manchester, New Hampshire 03101 Madison, Wisconsin 53719 Voice: 334.887.3297 Bellingham, Washington 98225Voice: 512.494.0369 Voice: 603.656.0336 Voice: 608.273.0182 Fax: 334.887.3298 Voice: 360.734.4525Fax: 512.494.0205 Fax: 603.656.0301 Fax: 608.273.0312 Fax: 360.734.4588
GDS Associates, Inc.Power Supply Planning Services Securing adequate and reliable power resources is crucial to thriving in a more competitive electrical market. As the short and long-term power supply market has been rocked in recent years with volatile prices and shortages, GDS has helped guide its clients through uncharted territory by developing sound power supply portfolios with a diverse mixture of term lengths, technology, and fuel supply. POWER SUPPLY STRATEGIES/NEGOTIATIONS GDS is known as an industry leader in developing creative and flexible power supply strategies. Weve also been active in helping shape the industry debate on transmission access, market design, and competition. By combining an in-depth understanding of utility planning, operations, and regulation with aggressive negotiating techniques, we have been able to help our public power and industrial clients secure favorable power supply arrangements with substantial long-term power cost benefits. RESOURCE PLANNING Our staff provides expertise in all areas of resource planning, including power plant and purchased power feasibility analysis, resource optimization, fuel supply and transmission cost analysis, demand-side management, load forecasting, and production cost modeling.
RESOURCE SOLICITATION GDS also offers expertise in the management of resource solicitation projects and the evaluation of bulk power sales proposals. From production and release of the solicitation, to final contract negotiation, we have managed dozens of national solicitations resulting in substantial long-term power cost savings. FORECASTING SERVICES We use state-of-the-art forecasting tools and techniques to assist clients with short and long-term power supply needs.FINANCIAL ANALYSIS COMPETITIVE ANALYSESGDS offers specialized expertise in GDS provides a wide range of servicesutility financial consulting. We have to help clients evaluate the risks andhelped clients obtain financing for opportunities presented by increasedgeneration, transmission, and competition in the electric utilitydistribution projects. We have helped industry, including:clients make decisions on debt Corporate Headquartersstructuring and repayment, and, in • Regional Power Market Modeling GDS Associates, Inc.concert with financial and legal • Transmission Impact and 1850 Parkway Placeadvisors, weve helped utility clients Suite 800develop and issue tax-exempt and Wheeling Cost Analysis Marietta, GA 30067general obligation bonds. In providing • Wholesale Rate and Marginal Voice: 770.425.8100these services, we have performed Cost Forecasts Fax: 770.426.0303financial feasibility analyses and • Fuel Price and Supply Analysis 919 Congress Avenueevaluated capital market alternativesfor system expansion. • Competitor Benchmarking Studies Suite 800 Austin, TX 78701 • Power Market Risk/Due Voice: 512.494.0369 Diligence Analysis Fax: 512.494.0205 • Merger, Acquisition, and www.gdsassociates.com Valuation Studies These services allow clients to quantify the risks of owning generation, losing load to competitors, encountering transmission constraints, and creating stranded investment due to increasing industry competition.
GDS Associates, Inc.Generation ServicesGreater competition has made effective control of power generationcosts increasingly important. Over a span of more than 15 years,GDS has helped numerous power plant co-owners and non-utilitygenerators reduce costs and achieve improved performance byidentifying inefficiencies in power plant construction, operation andmaintenance practices, and providing practical solutions. Our services include: • Power Plant Project Development • Plant Appraisals and Feasibility Studies • Licensing, Construction, and Operational Analysis • Construction and Operational Monitoring Programs • Market Dispatch Analysis • Operating Budget and Benchmarking Analysis • Litigation Support and Expert Testimony • Regulatory Support • Distributed Generation Options
GDS offers comprehensive market analysis of available generatingtechnologies for electric utilities or other entities seeking to determinewhich, if any, generating option best suits their needs. We additionallyprovide design oversight and fuel procurement services in the early,developmental stages of generating projects. GDS also offers plant construction and operational monitoring programs to help clients achieve comprehensive Corporate Headquarters GDS Associates, Inc. 1850 Parkway Place management oversight and favorable Suite 800 Marietta, GA 30067 resolution of co-owned plant dispatch, Voice: 770.425.8100 Fax: 770.426.0303 fuel supply, and cost allocation issues. 919 Congress Avenue Suite 800 Austin, TX 78701 Weve gained national recognition for Voice: 512.494.0369 Fax: 512.494.0205 our success in providing expert www.gdsassociates.com testimony in court cases and regulatory proceedings involving complex utility system dispatch, power plant construction, fuel procurement, and operating issues.
GDS Associates, Inc.Regulatory & Restructuring Services GDS provides comprehensive regulatory and restructuring services to generators, transmitters, distributors, and large users of energy. Industry restructuring initiatives across the country have made a solid regulatory strategy essential. Classical cost of service studies are being replaced with studies of unbundled utility services. Rate and rate design strategies are more complex than ever. GDS brings decades of expert experience in all aspects of utility rate litigation, contract negotiation, and transmission access. "OPEN-ACCESS" TRANSMISSION ISSUES Transmission access, pricing, and operation issues are currently at the forefront of a more deregulated power market across the U.S. GDS has been involved in transmission issues from the rulemaking beginnings of FERC Order 888, through Order 2000 and its Standard Market Design initiative and provides the following services to clients: • Locational Marginal Pricing • Transmission Evaluations, using load flow analysis • Constraint Evaluations (FCITC) • Flowgate Evaluations • Load Pocket Determinations • Import and Export Evaluation • Power Marketing/Trading Support • Production Costing • Transmission Availability • OASIS Monitoring • Power Plant Development • Siting Assistance – Transmission • Transmission Integration Analysis • Coordination of Interconnection Requests • Asset Integration and Optimization using generation dispatch modeling • Transmission Service Contract Negotiations • Ancillary Service/Loss Evaluations and Negotiations • Power Supply Contract Negotiations • Expert Testimony • Transmission Access Tariffs • Market Power Issues • RTO Development • NERC Reliability Council Monitoring • Transmission and Generation Operations • Control Area Certification • Dynamic Scheduling Coordination • Cost of Capital Analyses
WHOLESALE AND RETAIL RATE AND REGULATORY CONSULTINGDeregulation and uncertainty in power markets, along with large energy pricingswings, are unrivaled in the utility industry and require flexibility in ratemaking andregulatory strategies. GDS offers broad expertise in regulatory accounting, ratedesign, economics, finance, and engineering. Our experts are widely regarded fornegotiating favorable agreements and for winning favorable rulings by providingtestimony addressing a wide range of regulatory issues, including:• Industry Restructuring and Deregulation• RTO and ISO Formation• Power Plant and Transmission Line Certification• Power Plant Management Prudence• System Dispatch and Fuel Procurement Analysis• Cost of Service and Rate Design• Open Access Transmission Issues• Expert Testimony• Cost of Capital Analyses TECHNICAL LITIGATION SERVICES GDS provides a range of technical litigation services covering all aspects of case development, including: • Pre-Litigation Identification and Corporate Headquarters GDS Associates, Inc. Evaluation of Issues 1850 Parkway Place • Discovery and Database Suite 800 Development Marietta, GA 30067 Voice: 770.425.8100 • Formulation of Technical and Fax: 770.426.0303 Managerial Issues and 919 Congress Avenue Preparation of Strategies Suite 800 • Development of Questions for Austin, TX 78701 Depositions Voice: 512.494.0369 Fax: 512.494.0205 • Provision of Expert Testimony and Quantification of Damages www.gdsassociates.com Our experts have provided litigation support and damage analyses in several major lawsuits involving complex, technical issues related to utility management, construction, operation, accounting, and tax issues in state and federal courts and regulatory proceedings.
GDS Associates, Inc. Transmission Services As the U.S. power grid has been opened up to allow new market participants access to the regional transmission system, both generators and load serving entities face significant challenges in taking advantage of these new opportunities. With fragmented transmission systems, fractured energy markets and faltering infrastructure, it takes a steady hand to guide companies through the rubble of industry restructuring and help them reach their goals. GDS Transmission Services assist load-serving entities, transmission providers, independent generating companies, and state regulatory agencies with their “open access” issues and has the planning, operations, regulatory, and engineering experience necessary to assist its clients in navigating through these challenging times. In addition to todays competitive issues, GDS also offers expertise in the areas of transmission maintenance, equipment procurement, and cost-of-service issues.TRANSMISSION PLANNING TRANSMISSION OPERATIONS AND MAINTENANCEThe changing topology of the transmission Once transmission facilities have been put in place, the neednetwork can have significant commercial to maximize the life and utilization of the asset is an ongoingimpacts on loads and generators. GDS challenge. GDS has the hands-on experience to help clientsstaff has assisted several clients in evaluating get the most from their capital investments in transmissionthe prudence of system upgrades and the facilities.impact of grid expansion on our clientsbusiness goals. • Application of Reliability Centered Maintenance Principles• Power Flow Analysis • Development of Maintenance Specifications• Short Circuit Analysis and Work Plans• Transfer Limit/AFC Studies • Analysis of Maintenance Test Data• New Interconnection Evaluation • Development of Transmission Equipment• Control Area Development Specifications• Participation in Regional Planning, • Vendor Negotiation and Witness Testing Markets, and Operations Groups• Transmission Service Requests and TARIFF DEVELOPMENT AND ADMINISTRATION Applications Development and implementation of the regulatory and commercial implications of the changing world of Open Access Transmission requires a firm with the ability to provide advice and assistance to its clients to help them be prepared for and manage the new environment. GDS staff has helped multiple entities understand the requirements of FERC open access policy and be able to establish and update practices to handle the complexities of energy delivery. • OATT Development and Modifications • Evaluation of OASIS Business Practices • OASIS Business Practice Development and Training
BILLING AND SETTLEMENTS Once the regulatory dust has settled and clients are functioning in the new environment, two questions remain - Did I get the service I wanted and did I get charged appropriately for the service I received? GDS works with its clients to ensure they receive accurate billing and settlement information from their transmission service providers and/or RTOs. • Analysis of ISO/RTO Billing Data • Billing Systems Development • FTR/ARR Analysis and Valuation • Tagging, Scheduling, and Market Interfaces/SettlementsRTO INVOLVEMENT LITIGATION SUPPORT AND EXPERTAs RTOs continue to develop and TESTIMONYgrow, the transmission landscape is Any time there is upheaval in marketsbeing reshaped almost continuously. and new structures are being developedIt is critical that clients be involved in disagreements between parties inevitablyand understand the implications of arise. Sometimes these instances requirethe policy and process development resolution before local, state, or federal regulatory bodies. When those situations Corporate Headquartersactivities, and attempt to develop GDS Associates, Inc.rules that meet clients business require testimony or litigation, GDS is 1850 Parkway Placeneeds. GDS provides representation there to assist its clients by developing Suite 800and analysis of various RTO expert testimony and support in areas Marietta, GA 30067development activities for our clients dealing with the Transmission System. Voice: 770.425.8100in multiple jurisdictions. Fax: 770.426.0303 • Transmission Market Power Analysis• New Market Implementation • Transmission Cost-of-Service Issues 919 Congress Avenue Suite 800• New Entrant Participation Austin, TX 78701• Regional Working Group Voice: 512.494.0369 Representation Fax: 512.494.0205• Protocol Development www.gdsassociates.com• RTO Seams Issues
GDS Associates, Inc.Risk Management ServicesTHE BUSINESS ENVIRONMENTEnergy markets are inherently risky, andrecent years have proven just how riskythey can be. Billions of capital dollarshave been lost, market liquidity isevaporating, credit and transaction costsare skyrocketing, and volatility and highprices in the market continue. The energybusiness is in a state of continuous fluxwith no market or regulatory certainty insight. Buyers, sellers, and others in theenergy business need to understand therisks in this uncertain environment in orderto maintain their responsibility to theirstakeholders and to protect their bottom line.THE NEEDED RESPONSE THE APPROACHOrganizations can achieve their goals and GDS understands that risk management is moreobjectives in this volatile and uncertain than energy price management, more thanbusiness environment by developing and regulatory compliance, and that each client facesimplementing an effective comprehensive a unique set of challenges and risks. To fullyrisk management program. This program understand and mitigate the risks that can affectinvolves identifying, evaluating, and your business and your cost structure, yourmitigating the risks that threaten the leadership team must have a complete view ofstrategic and financial goals across your these exposures. Our approach incorporatesbusiness. We can design a risk management quantitative and qualitative techniques to capture,program that will assist your leadership assess, measure, evaluate, and mitigate the risksteam with this challenge. that can impact a businesss strategic and financial objectives and options, along with its operations, and ultimately the bottom line.
MORE ABOUT OUR APPROACH• Develop forecasted multi-year financial models (Cash Flow, Income, and Balance Sheet) Power Cost ($/MWh)• Identify and quantify risks in all business segments that can $25.0 $30.0 $35.0 $40.0 $45.0 impact these models Gas Price $3.67 $7.74 ($/MMBtu)• Perform a probability analysis of these risks using Monte Coal Price Carlo simulation techniques ($/MMBtu) $1.16 $1.69• Conduct a Cash-Flow-at-Risk (CFaR) analysis to determine Hydro Availability (%) 49% 14% financial impact CT Capital Cost $ 408 $ 536 ($/kW)• Utilize a risk matrix as a tool for developing a risk mitigation work plan Interest Rate (%) 4.6% 7.2%• Repeat the process based upon the risks and needs of the businessOUR RISK MANAGEMENT PRODUCT EXPERIENCE AND CAPABILITIESOFFERINGS • We have extensive capabilities to• Risk Assessment - Risk identification provide a comprehensive approach to and measurement, including risk management probability analysis of the forecasted • We have the risk intelligence expertise multi-year financial statements needed to identify the exposures that Corporate Headquarters• Risk Matrix - Proactive management can impact all segments of your GDS Associates, Inc. plan used to mitigate each risk business 1850 Parkway Place• Risk Policies/Procedures - Custom • We have a proven track record of Suite 800 tailored guidelines and directives to assisting leadership teams in meeting Marietta, GA 30067 insure program compliance the challenges of maneuvering Voice: 770.425.8100 Fax: 770.426.0303• Virtual Chief Risk Officer (CRO) - successfully through the energy industry Ongoing active advisory services 919 Congress Avenue that incorporate all of the above Suite 800 Austin, TX 78701 Voice: 512.494.0369 Fax: 512.494.0205 www.gdsassociates.com GDS Associates, Inc. is a multi-service consulting and engineering firm. Our consultants are recognized leaders in their respective fields, dedicated to their clients, innovative in their approach to meeting unique challenges, and known for consistently being available when needed. Our broad range of expertise focuses on clients associated with, or affected by, electric, gas, water and wastewater utilities. In addition, we offer information technology, market research, and statistical services to a diverse client base.